§ 8. Sir C. Osborneasked the Minister of Agriculture, Fisheries and Food for how many years Great Britain is pledged to buy sugar from Jamaica at £52 a ton, in view of the fact that Canada pays only £21 14s. a ton for the same quality sugar; why the United Kingdom has agreed to pay Australia £48 10s. a ton; what quantities per annum Great Britain has contracted to buy; and if he will terminate these agreements.
§ Mr. HoyWe have an obligation to purchase just over 1.7 million tons of sugar a year from Commonwealth suppliers under the Commonwealth Sugar Agreement at prices which are negotiated every three years as being reasonably remunerative to efficient producers and which are at present some £5 per ton below those quoted by the hon. Gentleman.
The Agreement is of indefinite duration, subject to our right to introduce changes after 1974 by giving certain periods of notice. I am informed that Canadian sugar refiners obtain about 90 per cent. of their imports from Commonwealth and other preferential suppliers, and pay them a margin on top of the world price, which is at present about £34 per ton.
§ Sir C. OsborneIs the hon. Gentleman aware that my figures came from the Economist, a normally reliable publication? In any event, even if we grant the hon. Gentleman the £5 per ton he mentioned, why should we be paying Commonwealth producers twice as much as we pay the Canadians when the Canadians have a standard of living twice as high as ours? Why should the same apply to the Australians, who also have an infinitely higher standard of living?
§ Mr. HoyI am surprised to hear the hon. Gentleman's remarks because only last November he put his name to a Motion urging the Government to restore the Commonwealth Sugar Agreement to its former eight-year term.
§ Mr. TurtonIs it not true that during the time of sugar shortage in 1962–63 British consumers were getting their sugar at half the world price owing to the Commonwealth Sugar Agreement?
§ Mr. HoyI agree with the right hon. Gentleman, and that is the purpose of the Agreement. It is designed to maintain level prices that are fair to both the consumer and the producer. I thought that that met with the support of practically the whole House.
§ Mr. W. BaxterWhile the Government rightly provide concessions to poorer Commonwealth countries, why is it necessary to pay £48 10s. per ton for Australian sugar?
§ Mr. HoyAustralia is part of the Commonwealth, and under the Agreement Australia gets rather less than some other Commonwealth territories.
§ Mr. GodberWhile my hon. Friends are glad to hear the hon. Gentleman defending the Agreement so valiantly, will not he draw the appropriate conclusion from all this and agree that here is a real example of a levy system working extremely well?
§ Mr. HoyI was merely asked about the Commonwealth Sugar Agreement. I cannot remember ever opposing it. I am delighted to show my support for it, and I am grateful for the right hon. Gentleman's support.